Back in the late ‘70s, I really felt like a “boy genius.”
I’d sailed through undergraduate school in two and a half years and enrolled directly into a finance MBA at Cal State Hayward right after graduating.
But when my final project rolled around, I had to sit there with my MBA advisor, looking through piles of market data I’d gathered, and tell him: “I think I just disproved my hypothesis.”
The discovery turned out to be a good thing – today, it’s the cornerstone of the “Moneyball” strategy I’ll reveal in Wednesday’s free Moneyball Multiplier Challenge.
But at the time, it looked like two years of hard work was about to be flushed down the drain. I was the first person in my family to attend college, the son of a stone mason. And when my professor asked me to design an experiment proving that the Efficient Market Hypothesis is true…my results only showed the opposite.
If you’re not familiar with the Efficient Market Hypothesis, here’s the bottom line: Academics had concluded that it was impossible to beat the market long-term because of the way information flows in the market. Therefore, the best strategy is just to buy the major indices and hold them until you’re ready to retire.
Well, contrary to the opinions of my professors, my data indicated that the Efficient Market Hypothesis was false.
This was before personal computers (PCs), so instead I used my access to a few mainframe computers at Wells Fargo and Stanford to analyze years of data on thousands of stocks. And what I ultimately found was little hidden formulas that can be used to find the stocks that are most likely to go up… with the least amount of risk.
This is not something I usually do outside of my paid newsletters…but I’m not hearing much elsewhere about the strategy we use at Breakthrough Stocks. And right now, it’s turning up much better opportunities than you’ll hear on TV.
To show you the kinds of gains we’re targeting now, here’s what my system has delivered in the past:
- A 220% gain on Bitauto Holdings
- A 208% gain on Valeant Pharmaceuticals
- A 371% gain on America Movil
- A 457% gain on Holly Corp.
- A 287% gain on XTO Energy
- And 613% gain on Santarus
And, because of how I designed my “Moneyball” system, we did it all with less risk than an S&P 500 index fund!
If you know anything about those companies, that might surprise you because they were all small-cap stocks. Their index benchmark, the Russell 2000, is certainly known for wider swings than the S&P 500 or the Dow.
But these smaller up-and-comers are also where you can find the best growth prospects. And when you’ve got a small cap with great momentum on Wall Street – plus strong fundamentals – then that’s a recipe for superior gains like the ones I just mentioned.
I don’t mean to brag, but I’m just trying to underscore how misguided it is to trust the Efficient Market Hypothesis – and how much better your performance can be with a stock-picking system like mine. It’s a crucial concept for investors right now, especially with the third-quarter earnings season around the corner.
Because I only target stocks with superior sales, earnings and money flow – any one of these earnings reports can be a major catalyst to propel shares higher. Click here to RSVP for Wednesday’s Moneyball Multiplier Challenge and be there to take part.